Allentown man gets prison in tax fraud case

An Allentown man gets prison for helping his son and daughter rake in $600,000 in IRS refunds.

An Allentown man will spend more than two years in prison for his role in a scheme to file false tax returns and collect IRS refunds in other people's names.

Liberado Peralta worked with his son and daughter between June 2011 and April 2012 to collect nearly $600,000 in fraudulent tax refunds. In addition to the 25-month prison term, U.S. District Judge Harvey Bartle III ordered Peralta to serve three years of supervised release and repay the government during a sentencing hearing Wednesday in Philadelphia.

Peralta's daughter Florentina Peralta, son Jose Peralta and Fayez Antonios were charged separately and pleaded guilty last year. Florentina Peralta was sentenced in March to three years in prison. Jose Peralta and was sentenced in August to two years in prison while Antonios received a 13-month prison term.

According to court documents, Liberado Peralta provided addresses where the others could direct the IRS to send checks, recruited people to participate in the scheme and helped his children and Antonios set up check-cashing businesses to cash the checks.

The scheme made use of an IRS policy that applies to residents of Puerto Rico requiring them to file tax returns only when they have worked in the mainland United States.

By using Social Security numbers and other identifying information of Puerto Rico residents, such scammers limit the risk that the IRS will be alerted by duplicate tax returns.

Prosecutors said the Peraltas and Antonios worked together to obtain the Social Security numbers and identities including the names, birth dates and Social Security numbers, of Puerto Rico residents.

Using the stolen identities, the Peraltas and Antonios then prepared tax returns with Allentown addresses, requesting that income tax refunds be mailed to those addresses, court documents allege.

The group funneled tax returns and refund anticipation loan checks through Antonios' businesses, Ace Home Solutions LCC in Allentown and Catty Check Cashing in Catasauqua, as well as Florentina Peralta's business, Alta Check Cashing in Emmaus.

Florentina Peralta also pleaded guilty in a mortgage fraud case that led to convictions for about a dozen people across the Lehigh Valley. She was sentenced to three months in prison in that case.